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The chipmaker now expects sales of $2.92 billion–$3.04 billion versus its previous guidance of $2.86 billion–$3.10 billion. The earnings outlook has also been narrowed to 44 cent–48 cents per share from 42 cents–50 cents.

Though the chipmaker has tightened its guidance range, the mid-point remains unchanged. According to data compiled by Bloomberg, analysts expect sales of $2.99 billion, slightly above the mid-point of management’s guidance of $3.98 billion. However, earnings expectations of 46 cents were in line with management’s guidance.

Management stated that while the demand for its chips used in automotives market is improving, orders from other industrial customers are weakening.

Like other chipmakers, TI has struggled in the recent quarters due to a slow global economy and weak consumer spending. To maintain the growth momentum, the company responded in part by cutting costs and trying to expand the use of its application processors on embedded solutions for the automobile, industrial and other non-consumer markets, which have a longer life cycle.

Texas Instruments is one of the largest suppliers of analog and digital signal processing integrated circuits. The company’s compelling product line-up, increasing differentiation in its business, restructuring activities and lower-cost 300-mm capacity should drive earnings in the longer term. In the second quarter, TI posted decent results, with the top-line numbers surpassing our expectations.

Other Stocks to Consider

Currently, Texas Instruments has a Zacks Rank #3 (Hold). Other stocks that are performing well at current levels include Intersil Corp. , Syntel Inc. (SYNT - Free Report) and Silicom Ltd. . All these stocks carry a Zacks Rank #2 (Buy).

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